Clean Harbors Inc (CLH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,377,280 | 6,382,870 | 6,129,710 | 5,653,700 | 4,131,520 |
| Total stockholders’ equity | US$ in thousands | 2,573,530 | 2,247,510 | 1,922,320 | 1,513,890 | 1,341,550 |
| Financial leverage ratio | 2.87 | 2.84 | 3.19 | 3.73 | 3.08 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,377,280K ÷ $2,573,530K
= 2.87
Clean Harbors Inc's financial leverage ratio has shown fluctuations over the past five years. In December 2020, the ratio stood at 3.08, indicating that the company had $3.08 of debt for every $1 of equity. This ratio increased to 3.73 by December 2021, suggesting a higher level of financial risk as the company took on more debt relative to equity.
However, by December 2022, the financial leverage ratio decreased to 3.19. This could indicate a strategic shift towards reducing debt or increasing equity in the capital structure. In the following year, by December 2023, the ratio further declined to 2.84, which implies a more conservative approach to financing and a reduced reliance on debt.
In the latest period, December 2024, the financial leverage ratio slightly increased to 2.87. This suggests that while the company may have taken on slightly more debt compared to the previous year, overall, the financial leverage remains at a moderate level.
Overall, Clean Harbors Inc's financial leverage ratio has exhibited fluctuations, with the company possibly adjusting its capital structure to manage risk and optimize financial performance.